Artivion, Inc. announced that it expects to receive $350 million in funding
January 17, 2024
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Artivion, Inc. entered in to a credit agreement to secure total gross proceeds of $350 million in credit facilities on January 18, 2024. The company will borrow $190 million secured term loan facility, $100 million secured delayed draw term loan facility, and a $60 million senior priority secured revolving credit facility. The transaction includes participation from new lenders Cion Ares Diversified Credit Fund, a fund managed by CION Ares Management, LLC; Ares Strategic Income Fund, Ares Jasper Fund, L.P., Chimney Tops Loan Fund, LLC, Private Credit Fund O, Llc, Ares Direct Finance I LP, Ares SFERS Credit Strategies Fund LLC, Ares Nd Credit Strategies Fund Llc, and Ares Capital Corporation, funds managed by Ares Capital Management LLC; ASIF Funding I, LLC; Ares Centre Street Partnership, L.P., a fund managed by Ares Management LLC; Ares Credit Strategies Insurance Dedicated Fund Series Interests Of The Sali Multi-Series Fund, L.P., a fund managed by SALI Fund Management, LLC; Ares Senior Direct Lending Master Fund II Designated Activity Company; SDL II Credit D1 LP; SDL II CREDIT D2 LP; Acme Private Credit Fund LP, a fund managed by Ares Management Corporation; Federal Insurance Company; Nationwide Life Insurance Company; Nationwide Mutual Insurance Company; Swiss Reinsurance America Corporation; Cliffwater Enhanced Lending Fund, a fund managed by Cliffwater LLC; Ares ND CSF Holdings LLC; Ares SFERS Holdings LLC; Private Credit Fund O Finance LLC; Private Credit Fund C-1 Holdco, LLC - Series 1; Ares Commercial Finance LP; Acf Finco II LLC; ADF I Holdings LLC; AN Credit Strategies Fund, L.P.; Ares Senior Direct Lending Parallel Fund (L) II, L.P.; Ares Senior Direct Lending Parallel Fund (U) II, L.P.; Ares Senior Credit Master Fund (U) III LP; Ares Senior Credit Master Fund Iii Lp; Ares Senior Credit Investment Partnership (Cp) Lp; PRIVATE CREDIT FUND C-1 SPV 2, LLC; Ares Credit Investment Partnership Iii C Lp; ASH HOLDINGS II (U), L.P.; AO MIDDLE MARKET CREDIT FINANCING L.P.; AO MIDDLE MARKET CREDIT L.P.; BOWHEAD IMC LP; and AJ MIDDLE MARKET CREDIT LP. The credit facilities will be matured on January 18, 2030. There are no scheduled repayments of principal required to be made prior to the final maturity date. The company has the right to prepay loans under the Credit Agreement in whole or in part at any time, provided that any prepayment of loans under the Term Loan Facilities will be subject to a prepayment premium of 5% if the prepayment occurs prior to January 18, 2025 and 1% if the prepayment occurs thereafter and prior to January 18, 2026. Loans under the Term Loan Facilities bear interest, at a floating annual rate equal to either the base rate plus a margin of 5.50% or Secured Overnight Financing Rate plus a margin of 6.50%; beginning with the second fiscal quarter of 2025, the margin may step down to 5.25% and 6.25%, respectively, based on the company's total net leverage ratio at such time. Loans under the Revolving Credit Facility bear interest, at a floating annual rate equal to either the base rate plus a margin of 3.00% or SOFR plus a margin of 4.00%. As a part of the transaction, Ares Capital Corporation acted as administrative agent and collateral agent.
On the same date, the company has raised $190 million under secured term loan facility and $30 million under senior priority secured revolving credit facility in its first tranche.
Artivion, Inc. is a medical device company engaged in the manufacturing, processing, and distribution of medical devices and implantable human tissues used in cardiac and vascular surgical procedures for patients with aortic disease, heart valve disease, aortic aneurysms, and dissections. The Company's segments include Medical Devices and Preservation Services. The Medical Devices segment includes sales of aortic stent grafts, surgical sealants, and On-X. The Preservation Services segment includes services for the preservation of cardiac and vascular implantable human tissues. It has four product families: aortic stent grafts, surgical sealants, On-X mechanical heart valves and related surgical products, and implantable cardiac and vascular human tissues. Aortic stent grafts include aortic arch stent grafts, abdominal stent grafts, and synthetic vascular grafts. Surgical sealants include BioGlue Surgical Adhesive products. It also sells or distributes PhotoFix bovine surgical patches.